Nevada Adds Another Tool to Its Tool-belt to Combat Underground Economy

States that require a person that engages in work requiring a contractor’s or specialty contractor’s license generally include within their licensing law an express provision making it unlawful to advertise for work requiring a contractor’s license unless the person, in fact, is property licensed. Many states’ licensing laws also require a licensed contractor to include its license number in any advertising. Starting October 1, 2015, Section 624.720(2) of the Nevada Revised Statutes requires any person not licensed pursuant to Nevada’s contractors’ licensing law, Chapter 624 of the Nevada Revised Statutes, who advertises to perform or complete construction work or a work of improvement to affirmatively state in the advertisement that he or she is not licensed pursuant to Chapter 624. Licensed contractors should also be careful not to advertise for work that exceeds the scope of their contractor’s or specialty contractor’s license.

Like other states, Nevada broadly defines “advertising” to include, but not be limited to, “the issuance of any sign, card or device, or the permitting or allowing of any sign or marking on a motor vehicle, in any building, structure, newspaper, magazine or airway transmission, on the Internet or in any directory under the listing of ‘contractor’ with or without any limiting qualifications.” Nev. Rev. Stat. § 624.720(9). The inclusion of “airway transmission” is often interpreted to include advertising on social media as well as other websites.

A violation of this prohibition will also sting a little more as Nevada has revised Section 624.750(2)(a) to require that a significantly higher civil fine be imposed for a violation of Section 624.720 as well as for a violation of other sections of Chapter 624.